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Atlantic Lithium announces Ewoyaa MRE upgrade

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Global Mining Review,

Atlantic Lithium Ltd, a fully-funded, African-focused lithium exploration and development company on track to become West Africa's first lithium producing mine, has announced a significant mineral resource estimate (MRE) upgrade to 30.1 million t at 1.26% Li2O for the Ewoyaa lithium deposit within the Cape Coast Lithium Portfolio in Ghana, West Africa. The resource is reported in accordance with the JORC Code (2012).


  • 42% increase in MRE to 30.1 million t at 1.26% Li2O, reported in accordance with the JORC Code (2012) in Indicated and Inferred status at the Ewoyaa deposit.
  • Total Resource grade remains largely unchanged, highlighting its robust geological fundamentals, and includes a 294% increase to 20.5 million t at 1.29% Li2O in the indicated category and 9.6 million t at 1.19% Li2O in the inferred category.
  • Mineralisation remains open at depth and along strike with additional untested pegmatites within the immediate deposit area, providing confidence for further resource upgrades.
  • The MRE upgrade is based on a total 90 308 m of reverse circulation (RC) and diamond core (DD) drilling which includes an additional 37 500 m of drilling completed to end December 2021 (including approximately 10 750 m of DD).
  • Resource expansion and exploration RC drilling underway with one RC drill rig active on site. Regional exploration auger drilling underway with six rigs active over the portfolio; detailed airborne geophysical survey awarded and soil sampling surveys underway over newly granted Cape Coast license.
  • Significant exploration upside within broader 560km2 Cape Coast lithium portfolio, including historic 1.48 million t at 1.67% Li2O Egyasimanku Hill deposit (non JORC).
  • Resource exceptionally well located; adjacent high-power transmission lines, within 1km of national highway and within 110 km to the operating deep-sea port of Takoradi.
  • Resource upgrade expected to significantly improve project economics. The previously announced scoping study update, based on 21.3 million t at 1.31% Li2O resource, delivered robust financial outcomes for a 2 million tpy operation, producing an average 300 000 tpy of 6% Li2O spodumene concentrate (SC6) over an 11.4-year operation:
    • Life of mine (LOM) revenues exceeding US$3.43 billion, Post-tax NPV8 of US$789 million, IRR of 194% over 11.4 years.
    • US$70 million capital cost with industry-leading payback period of <1 year.
    • C1 cash operating costs of US$249/t of 6% lithium spodumene concentrate Free on Board (FOB) Ghana Port, after by-product credits.
    • Pre-tax NPV8 of US$1.23 billion and EBITDA of US$2.02 billion for LOM.
    • Average EBITDA of US$178 million/yr.
  • Significant potential for further resource upgrades to extend the planned LOM; Project metrics substantially improve with a LOM of 15 years and beyond.

Lennard Kolff, Interim CEO of Atlantic Lithium, said: “We are delighted to have increased the Ewoyaa Resource by a further 42% to 30.1 million t at 1.26% Li2O and will continue to grow this robust project with ongoing drilling programs. Our goal was to increase the resource to support a >12-year mine life and to convert >80% of the previous resource from inferred to indicated status. We have comfortably achieved both goals, demonstrating the robust geological fundamentals of the project.

“With the commencement of additional resource, and exploration drilling along strike and at depth, we are confident of further resource upgrades.

“In conjunction with the ongoing drilling, mining studies in support of the pre-feasibility study are well advanced.

“Due to the coarse nature of the spodumene dominant mineralisation, metallurgical test-work to date has consistently delivered high-purity, low contaminants >6% Li2O spodumene concentrate utilising dense medium gravity separation, boding well for low capital, operating and carbon intensities.

“The resource is exceptionally well located, being only 1km from the sealed national highway and 110km from the operating deep-sea port of Takoradi with adjacent grid power; it is challenging to find other lithium pegmatite projects better located.

“Delivery of the upgraded 30.14 million t at 1.26% Li2O MRE, including 20.5 million t at 1.29% Li2O in the indicated category, is an important de-risking milestone for this industry standout project. With Ewoyaa being fully funded to production through our agreement with Piedmont Lithium, this upgrade highlights the exceptional potential of the project and the value that it brings to the company.”

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African mining news Lithium mining news